Tyre recall extended to Europe

The company has offered to replace suspect tyres

Tyre giant Bridgestone/Firestone has extended to Europe its recall of millions of tyres because of safety fears.

The recall followed the launch of an investigation in the US.

It is thought a fault in the tyres could be linked to 46 deaths and 80 injuries from accidents.

A US watchdog has received 270 complaints alleging that the suspect tyres have peeled from their casings in heat or during high-speed motoring.

Made in USA

The company is recalling about 6.5 million Firestone ATX, ATX II and Wilderness AT tyres produced at plants in North America.

Free replacements are being offered.

The company says it believes only a few thousand were distributed in Europe - mostly for use on Ford Explorers.

Elsewhere, the tyres tend to be fitted as standard on pick-ups and four-wheel-drive vehicles by manufacturers including Ford, General Motors and Toyota.

About 14.4 million of these tyres have been produced in total, and the company estimates that about 6.5 million are still in use.

Bolstering consumer confidence

"We felt we must take this extraordinary step as a precaution to ensure consumer safety and consumer confidence in our brands," said Gary Crigger, Bridgestone/Firestone's executive vice president.

Complaints about the tyres have been most numerous in US states with warmer climates, where heat may accelerate tyre degradation.

Ford has already replaced free of charge Firestone tyres on vehicles sold in Thailand, Saudi Arabia and some South American countries, but has resisted pressure to replace them in the US.

The safety concerns have prompted leading US retailers Discount Tire, Montgomery Ward and Sears Roebuck to stop selling the tyres.

Shares under pressure

Some analysts advised investors to sell shares in Bridgestone, Bridgestone/Firestone's Japan based holding company, after rumours of the recall emerged. Bridgestone shares fell 8% in Tokyo on Wednesday.

But Howard Smith at ING Baring Securities said the firm, which posted profits of more than $2bn in the year to March, could absorb the cost of a recall.

"What can't be survived is a five or 10-year slump in the tyre replacement market as that is where they make all their profits," Mr Smith said.

The then Firestone Tyre & Rubber company recalled 14 million tyres amid safety concerns in 1978, and was fined $500,000 for not having reported the problem immediately.

It was bought by Bridgestone in 1988.